Corporate Plan 2019–23

ABORIGINAL HOSTELS LIMITED

IntroductionThe Directors of Aboriginal Hostels Limited (AHL), as the accountable authority, present the AHL Corporate Plan for 2019–2020, which covers the period 2019–2023, as required under s 95(1) of the Public Governance, Performance and Accountability Act 2013.

AHL provides accommodation through a national network of accommodation facilities for Aboriginal and Torres Strait Islander people who are travelling, relocating or who must live away from home to access education, health care or employment opportunities.

AHL is an Australian Government company limited by guarantee and incorporated under the Corporations Act 2001. The Australian Government, through the responsible minister, is the sole member of the company.

This Corporate Plan sets out a series of core operational and strategic priorities which AHL will continue to pursue in addressing business efficiency, financial sustainability, improved service delivery, sustainable asset management, accountability and strong corporate governance.

AHL will consolidate the gains from its reform program to ensure the company’s viability and ability to meet its mandate, including by strengthening its focus on frontline services to ensure that accommodation services provided to every resident, in every hostel, more than meet expectations of comfort and safety.

Contents

Our vision 2

Our purpose 2

Our values 3

Accommodation services 4AHL’s hostel network 5

Operating Environment 6Accommodation supply and demand 6

Outlook for 2019–20 7

Strategic Focus 8Strategic priorities in 2019–20 9

Partnerships and Engagement 10Engagement priorities in 2019–2020 11

Capabilities 12Facilities 12

Financials 12

People 12

Customer service 12

Corporate Governance 13

Business Priorities in 2019–20 13

Performance Framework 14Activities and Objectives 14

Performance Measures 2019 –20 14

Risk Management 15Enterprise Risk Management 15

Monitoring and review 15

Enterprise Risk Priorities 2019–23 16

Relevant legislation 17

Corporate Plan 2019–2023 1

Our vision

Our purpose

AHL’s vision is to improve the quality of life and economic opportunity for Indigenous Australians.

AHL’s purpose is to provide culturally safe, fit-for-purpose, affordable accommodation for Indigenous Australians who need to be away from home to access employment opportunities, and health, education and other services.

Across its network of hostels, AHL staff provide accommodation and meals in an environment which supports the cultural well–being of residents, including through strong relationships with local Indigenous service providers and referral agencies.

To ensure quality of service and the ability to offer affordable accommodation on a sustainable basis, AHL will pursue the following broad strategies:

• Quality service delivery

• Business efficiency

• Sustainable asset management.

Aboriginal Hostels Limited2

Our values

In delivering on its core purpose, AHL’s values include:

Respect for

• our residents

• Aboriginal and Torres Strait Islander culture, protocols and language

• our staff

• our partner organisations and stakeholders

Accountability and commitment to

• Australian Government priorities for Indigenous Australians

• efficient and effective business practices and use of Government funds

• culturally safe and appropriate accommodation

Dignity and opportunity by

• being a learning organisation for residents and staff

• fostering teamwork, collaboration and meaningful engagement

• being an employer of choice for Indigenous Australians.

Corporate Plan 2019–2023 3

Accommodation services

AHL is a not-for-profit company wholly owned by the Australian Government, with an independent non-Executive Board of Directors.

Each year, AHL provides a place to stay for more than 20,000 Aboriginal and Torres Strait Islander men, women and children.

Residents are charged a tariff that is affordable for recipients of Australian Government income support. Through an annual appropriation, the Australian Government provides funds to cover the gap between tariff income and the cost of providing hostel services.

AHL is one of the largest providers of employment and training for Aboriginal and Torres Strait Islander people: more than 60 per cent of our workforce identify as Indigenous.

AHL’s hostel network is segmented into three service categories:

1. Multipurpose (22 facilities, 1,152 beds,

64 per cent of resident capacity)

Accommodation in towns and cities for individuals and families awaiting housing, seeking employment or meeting general business and other commitments away from their homes and communities.

Some residents stay until they are able to access long-term accommodation.

2. Secondary and tertiary education (12 facilities, 399 beds, 19 per cent

of capacity)

A safe, comfortable environment for secondary students while they attend high school to pursue their educational goals, including the year 12 certificate and their potential transition to higher education and training.

ABSTUDY assistance is available to help with the cost of secondary education hostel accommodation.

AHL also provides accommodation for Indigenous students who undertake higher education and training — opening doors to degrees, diplomas and employment opportunities.

3. Health and medical (11 facilities, 308 beds,

17 per cent of capacity)

Hostels catering specifically for Indigenous people who need to be away from home to access medical treatment, including renal dialysis and antenatal or postnatal care for mothers and babies.

Financial assistance and help with transport are available through state and territory patient-assisted travel schemes.

Aboriginal Hostels Limited4

AHL’s hostel network

Western Australia

Top End

Southern Central Australia

South Eastern Australia

Queensland

Perth (2)

National Offi ce

Alice Springs (5)

Tennant Creek (2)

Kalgoorlie

South Hedland

Broome

Derby

Kununurra

Wadeye

Katherine (3)

NhulunbuyDarwin (5)

Thursday Island (2)

Cairns

Townsville (2)

Mackay

Brisbane (3)

Sydney (3)

Newcastle (2)

Melbourne

Adelaide (3)

Rockhampton

Mount Isa

Armidale

TamworthDubbo

Canberra

Corporate Plan 2019–2023 5

Operating Environment

AHL is an Indigenous Portfolio Body within the National Indigenous Australians Agency.

Within the portfolio, AHL is one of three Commonwealth Companies under the Public Governance, Performance and

Accountability Act 2013 (PGPA Act). A further nine Corporate Commonwealth Entities represent a total of 12 Indigenous Portfolio Bodies.

The Australian Government’s priorities in Indigenous affairs are to:

• improve the lives of Indigenous Australians through increased participation in education and work

• make communities safer where the ordinary rule of law applies

• ensure, through the collaboration of its departments, that mainstream policy, programs and services deliver benefits to Indigenous Australians.

By creating access to services through the provision of accommodation, AHL supports the Government’s effort to overcome Aboriginal and Torres Strait Islander disadvantage.

AHL’s outcome under the Portfolio Budget Statements for Indigenous Affairs is measured in occupancy rate.

PBS outcome: Occupancy as a percentage of bed nights available

2019–20 2020–21 2021–22 2022–23

70% 70% 70% 70%

Accommodation supply and demand

Demand for short-term and transitional accommodation will continue to rise over the next decade and will require AHL to ensure that its accommodation facilities are of the right property type, in the right location and deliver the right mix of services.

AHL recognises the increasing growth in demand for transitional and crisis accommodation options and continues to assess the performance of its facilities to ensure they align with current demand.

The high burden of chronic disease and disability experienced by Indigenous adult populations continues to drive demand for access to health services, in particular hospital care, and is likely to increase. On current evidence the greatest unmet demand presently and in the future is likely to be for health/medical accommodation services. This demand is increasingly being met through AHL’s multipurpose facilities.

Education-related accommodation services continue to be in demand, in particular, the secondary education segment, which shows potential for growth in the medium term.

Unlike AHL’s other accommodation segments, there is no evidence of market failure in the tertiary education space, with other providers satisfying demand for Indigenous tertiary student accommodation.

Aboriginal Hostels Limited6

Outlook for 2019–20

AHL has implemented a substantial program of restructuring and financial controls to ensure the company’s ongoing viability. This includes better targeting of resources to frontline services to meet Indigenous Australians’ accommodation needs and improve the level of service offered across the hostel network.

AHL’s underlying financial position will remain strong as a result of increased efficiencies and productivity gains achieved to date. As a result of this strong position, AHL’s Board and Executive will seek to identify new opportunities to reinvest and reposition the company’s footprint and service model over the next four years.

AHL acknowledges the growing demand for more flexible accommodation options, such as transitional accommodation. In 2018–19 AHL completed a major demographic demand mapping study in collaboration with the Australian Institute of Health and Welfare to more fully understand the nature of those changing needs and their likely impact on the company’s accommodation services.

Demographic demand data suggests the following priority areas for attention in relation to AHL’s current and future network footprint:

1. Expansion of AHL’s multipurpose presence in NSW

2. Realignment of AHL’s multipurpose presence in much of QLD (Brisbane to the state’s far-north)

3. Rationalisation of AHL’s secondary education presence in NSW

4. A decision on the future of AHL’s remaining tertiary education hostels

5. Substantial unmet homelessness and renal accommodation demand in central Australia and the Top End

6. Configuration of numerous multipurpose hostels to accommodate their growing use by medical and renal patients.

AHL’s medical segment continues to perform well and demonstrates close alignment with demand.

In line with findings from this study, AHL has worked closely with both the Commonwealth and Northern Territory governments to identify solutions to critical accommodation shortages in the Northern Territory.

That work has culminated in additional funding through the Barkly Regional Deal to establish new accommodation facilities in Central Australia (Tennant Creek).

New Indigenous Advancement Strategy funding in the Top End will enable AHL to significantly expand its ability to meet accommodation demand in Darwin.

Scoping and consultation for both initiatives will be undertaken in 2019–20.

AHL continues to monitor broader initiatives in Indigenous affairs which affect the organisation’s work.

Corporate Plan 2019–2023 7

Strategic Focus

The Board has set a focused strategic agenda to strengthen the company’s strategic relationships and realign AHL’s service footprint to better cater to accommodation demand in coming years.

In line with AHL’s mandate, this strategic agenda is based on the following underlying principles:

• AHL should not be in competition with other providers and should operate only in areas of market failure.

• AHL should not provide services in areas the Commonwealth already funds. AHL’s service footprint should be in the health, secondary education and multipurpose segments

• AHL does not provide wraparound support services except via referral to external providers, or where additional specific funds are sourced

• AHL must continue to operate within budgets, and will explore alternative funding sources and/or partnerships where needed to achieve its objectives

• AHL will reassess its contribution to the growth in demand for more medium-term, transitional accommodation. However, AHL will not move into social or other forms of public housing provision.

Aboriginal Hostels Limited8

Strategic priorities in 2019–20

Sustainability Purpose Organisational culture Engagement

• Continue to own and/or manage properties to standard and within budget

• Ongoing review and realignment of current hostel portfolio to meet contemporary needs and expectations

• Respond to new business opportunities with evidence-based decision-making

• Respond to the growth in demand for medical and transitional accommodation

• Continuous improvement of the current short-term accommodation service offering

• Engage with and consult residents and stakeholders regarding residents’ needs in each hostel service category

• Foster a professional, outcomes-focused corporate culture

• Provide recognition and career pathways for staff

• Maintain/increase staff retention

• Strengthen relationships with key stakeholders to improve resident outcomes, maintain business viability and ensure services effectively meet demand

• Examine AHL’s longer term market identity and presence

Duty of Care

AHL has invested considerable resources to ensure the organisation maintains its duty of care obligations, including alignment with the findings of the Royal Commission into Institutional Responses to Child Sexual Abuse. AHL’s Child Protection Framework and associated training program has been expanded to incorporate the organisation’s obligations under the Working with Vulnerable People program.

AHL’s pre-employment screening program has also been strengthened, including biennial police check renewals for all staff, and a commencement exclusion on all new appointments until relevant clearances (including working with children checks) are finalised.

AHL’s self-assessment risk rating with respect to vulnerable people has been given an ‘Extreme’ rating — and is now closely overseen by the agency’s Audit, Risk and Finance Committee, which reports directly to the AHL Board. In line with this risk rating, AHL has developed a staff training module which is progressively being rolled out nationally across the organisation’s network of hostels. AHL will review and report annually through a Statement of Compliance.

Corporate Plan 2019–2023 9

Partnerships and Engagement

AHL’s Board has taken action to strengthen the organisation’s goals, priorities and objectives going forward — including through a particular focus on partnerships and engagement with key stakeholders.

While interest in traditional hostel facilities remains strong, the organisation is increasingly working with partners and potential partners to develop different models of accommodation suited to the needs of particular client groups. AHL is committed to strengthening these partnerships and engaging stakeholders to ensure adequate provision of services to support our clients during their stay and to ensure linkages with the services they need.

Board members, as well as AHL’s Executive, Business Managers and hostel staff actively seek to engage with stakeholders to develop and strengthen connections which can open doors to better service alignment opportunities. This includes through collaboration across agencies at the Commonwealth and state/territory levels, as well as with service providers and organisations at the local level.

AHL’s stakeholder engagement approaches are tailored according to the purpose and intent of particular initiatives, involving tiered partnerships at the national, state/territory and local levels:

AHL

Business Managers Hostel Staff

Minister for Indigenous Australians

Hostel ResidentsCommonwealth

Agencies

Community representatives

Local Indigenous and mainstream community organisations

State & Territory Governments and Agencies

Aboriginal Hostels Limited10

Engagement priorities in 2019–2020

Responding to accommodation needs in Darwin Improving performance in secondary education hostels

Purpose

Deliver new services to alleviate Indigenous accommodation pressures in Darwin, NT

Engagement Approach

AHL Executive develop a consultation plan to engage key stakeholders and seek community input

Stakeholders

• NT Chief Minister and Minister for Housing

• Northern Territory Dept. of Local Government, Housing and Community Development

• Darwin City Council

• Larrakia Nation

• Local housing and allied support organisations

Purpose

Increase occupancy and student retention in secondary education hostels

Engagement Approach

Education Manager and hostel staff develop local and regional plans to engage key stakeholders

Stakeholders

• School principals

• Student alumni and families

• State and territory education departments

• Transition Support Unit

• Youth sporting & recreation organisations

• Indigenous education support programs and providers

Addressing medical residents’ nutritional and amenity needs Barkly Regional Deal

Purpose

Develop and implement a demonstration project in Darwin to deliver tailored levels of service to medical residents

Engagement Approach

Partnership with health sector expertise

Stakeholders

• Menzies and Deeble Institutes

• National Aboriginal Community Controlled Health Organisation

• Renal dietitians’ network

• Departments of Health (Commonwealth and Northern Territory)

• Medical & renal residents

• Danila Dilba Health Service

• Royal Darwin Hospital

Purpose

Delivery of Barkly Regional Deal Visitor Park initiative in Tennant Creek

Engagement Approach

Tri-partite leadership arrangement

Stakeholders

• Barkly Regional Council

• Northern Territory Government

• Barkly Governance Roundtable (and Visitor Park sub-committee)

• Department of Infrastructure, Regional Development and Cities

• Department of Prime Minister and Cabinet

• Local non-government organisations and service providers

Corporate Plan 2019–2023 11

Facilities

Providing 1,700 beds each night (including three meals daily) across a network of 45 medical, education and multipurpose accommodation facilities Australia-wide.

AHL has seen growing pressure on its facilities to cater to more complex accommodation needs. The company will seek to partner with relevant expertise to advise on how it can modify current facilities to meet changing amenity requirements, particularly given the growing use of multipurpose hostels by medical and renal patients.

Financials • $125 million property portfolio

• $36.4 million appropriation in 2019–20

• $17.2 million self-generated revenue (tariff + contracted services)

• $28.8 million payroll

AHL’s fixed annual appropriation against rising costs places significant pressures on the organisation going forward.

Tight financial controls and fiscal restraint will remain in place during the period of this Corporate Plan.

People• A workforce of more than 300

(predominately frontline) staff working across AHL’s hostel network

• 45 facilities across six states and territories, employing local staff

• Highest proportion of Indigenous staff in the APS, at over 60 per cent

AHL’s workforce is integral to effective service delivery. Workforce stability and capability, including through suitably trained staff, remain critical to AHL achieving its objectives.

To maximise the ability of staff to contribute to organisational objectives, AHL will seek to:

• employ Indigenous Australians at all levels

• retain and develop its workforce

• attract staff with the right mix of skills who apply its values.

Customer service

AHL’s Customer Service Charter is an expression of the organisation’s commitment to its customers to strengthen its focus on frontline services.

The Charter commits AHL to consistently deliver well-maintained hostels with clean and comfortable rooms, nutritious meals and welcoming, professional-standard customer service.

The Charter is supported by pro-active customer feedback and complaint management mechanisms.

Capabilities

Aboriginal Hostels Limited12

Corporate Governance

AHL operates in a complex regulatory and accountability environment. In carrying out its governance role, the Board must ensure that AHL complies with its contractual, statutory and other legal obligations.

AHL’s Governance Charter calls for on-going professional development of Directors, particularly given the complex and evolving nature of corporate governance and the changing environment in which AHL operates.

To ensure best practice corporate governance, the Board conducts an annual review of its performance and effectiveness, including:

• governance structure, roles  and relationships

• performance of Board functions

• Board decision-making processes

• Board skills, culture and development.

Directors receive relevant information and briefings on their appointment to assist them to meet their Board and committee responsibilities.

Business Priorities in 2019–20

AHL’s purpose is to provide culturally safe, fit-for-purpose, affordable accommodation for Indigenous Australians who need to be away from home to access employment opportunities, and health, education and other services.

In delivering on its stated purpose, AHL undertakes activities under three key programs:

1. Service delivery

2. Corporate Services

3. Asset Management

AHL’s Performance Framework is based on objectives under each of the above programs:

i. Quality accommodation services

ii. Business Efficiency

iii. Sustainable asset management

These objectives are in turn embedded in Business Plans as project-based activity.

Corporate Plan 2019–2023

Performance Framework

Activities and Objectives

Service Delivery Corporate Services Asset management

Clean, neat, welcoming hostel environment

Right people doing work right

Focus of operations on areas of greatest need

Efficient, fit-for- purpose business infrastructure

Assets maintained to standard

Quality, appropriate meal service

Responsiveness to guests’ needs

Operation within available resources

Streamlined, evidence-based business planning

Effective and efficient asset management systems

Greater focus on secondary education

Professionalised hospitality service

Focus on safety and quality assurance

Proactive risk management

All hostels fit for purpose

Performance Measures 2019 –20

Quality accommodation services Business efficiency Sustainable asset management

Utilisation:

• Minimum 70% occupancy rate

• Number of residents accommodated (measured as unique occasions of stay)

Implementation of secondary education strategy:

Increase in secondary student enrolments (measured as occupancy rate)

Number of children staying in multipurpose facilities (and attending school)

Customer satisfaction:

Minimum 80% resident satisfaction rating

QA audit program:

Continued improvement in accommodation amenity, food and safety ratings

Implementation of workforce strategy:

• Maintain minimum 60% Indigenous employment

• Unscheduled leave in line with APS average

• Increased staff retention rates

• APS staff census results in line with comparator agencies

Break-even or better operating result

Improved Work Health & Safety indicators:

• Reduce staff injury incidents

• Reduce Comcare reportable incidents

• Reduce/maintain Comcare premium in line APS comparator agencies

Expand presence in areas of greater accommodation need, including Darwin and Tennant Creek, NT

Enterprise Risk Management Framework:

• Safety and compliance standards are met

• Audit program completed

• No ANAO audit findings

Implementation of ICT Strategy:

• Significant savings achieved in backend operations

• Streamlined front-end user operability

• Meet new ICT security standards

• Ensure ICT business continuity

Implementation of Strategic Asset Management Plan and associated site–based management plans:

• Maintain industry benchmark repair & maintenance investment in hostel assets (at least 2% of replacement value)

• Compliance with building and safety codes, all hostels fit for occupation

• Planned vs unplanned maintenance ratio shifted from 70/30 to 80/20

Aboriginal Hostels Limited14

Risk Management

AHL manages risk by ensuring compatibility between its business strategy, business plans and Enterprise Risk Management (ERM) framework.

The Audit Risk and Finance Committee assists the Board in discharging its responsibilities under the Public Governance,

Performance and Accountability Act. The Committee’s role is to provide independent assurance to the Board on the following functions:

• Risk oversight and management

• System of internal control & internal audit

• Financial planning

• Financial reporting

• Delegations

• Business continuity management

• Ethical & lawful behaviour

• Performance reporting

• Legislative and policy compliance.

Committee membership is drawn from the AHL Board, and by co-opting appropriate subject matter experts to ensure the Committee discharges its responsibilities effectively. The ANAO has a standing invitation to attend all Audit Risk & Finance Committee meetings.

Enterprise Risk Management

ERM is a structured, consistent and continuous process used across AHL at the strategic and operational levels. It is used for identifying, assessing, responding to and reporting on opportunities and threats that affect the achievement of AHL’s business objectives.

AHL’s risk appetite is articulated through its risk appetite statement, its descriptions of likelihood and consequence, its matrix for rating risk and its risk register.

Risk tolerance is determined in reference to the company’s Risk Management Plan. The plan sets out the process for monitoring compliance with risk tolerance,

and any breaches, and contains instructions to the Board, management and staff for the implementation of consistent risk management practices throughout AHL.

The risk management process is cyclical and is linked to AHL’s planning cycle.

Roles and responsibilities relating to risk management within AHL are as follows:

• AHL Board — overall responsibility for risk management

• Audit, Risk and Finance Committee — quarterly review of the enterprise risk register and independent assurance for the Board on risk management

• CEO — compliance with AHL’s Risk Management Policy and Risk Management Plan

• CFO/Company Secretary — compliance with ERM framework and process

• All AHL staff — active management of risk in accordance with Risk Management Policy and Risk Management Plan.

Monitoring and review

AHL’s ERM framework will be reviewed annually as part of the process of continuous improvement set out in AS/NZS ISO 31000.

The Board is regularly appraised of significant risk mitigation activities. It also receives assurance that risk management plans are in place for each key risk, and that satisfactory risk mitigation is being undertaken for operational and functional risks.

The key enterprise risks being managed during the period of this plan are:

• Quality accommodation services

• Business efficiency

• Financial sustainability

• Sustainable asset management.

Corporate Plan 2019–2023 15

Enterprise Risk Priorities 2019–23

ERM Component Risk MitigationEffects on AHL (if unmitigated)

Quality accommodations services

Accommodation services • Failure to improve amenity and food service

• Customer service unsatisfactory

• Failure to adapt hostel environments to new accommodation needs

• Cycle of QA audits (amenity)

• Compliance with state and territory food regulations

• Accountability in responding to resident complaints

• Occupancy targets not met

• Services not aligned to meet demand

Staffing • Inability to attract and maintain staff with skillsets appropriate to frontline positions

• Hostel staff not adequatelyscreened

• Emphasis on frontline positions, including strengthened recruitment practices and staff training

• Insufficient capacity to deliver services adequately

WH&S and duty of care for staff and residents

• Failure to comply with WH&S regulations

• Failure to protect children from harm

• Failure to manage fraud and theft

• Cycle of QA audits (risk) Child Protection Framework & training (inclusive of Commonwealth Working with Vulnerable People requirements)

• Frameworks for workplace conduct and due diligence

• Physical and psychological harms to staff and  residents

• Rise in Comcare premiums Financial losses

• Reputational damage

Business efficiency and financial sustainability

Financial controls and performance

• Failure to maintain financial controls, including over expenditure and self-generated revenue

• Proactive internal audit program

• Detailed quarterly financial performance reporting to Audit Risk & Finance Committee (and Board)

• Implementation of further savings measures

• Effective debtor management

• Insufficient funds for effective operations, reinvestment, asset maintenance or shortfalls in revenue

Information technology • Failure to maintain system integrity

• ICT Strategy • Disruption to business continuity and security

Sustainable asset management

Asset portfolio • Sites not fit for purpose and/or unsafe

• Sites not in locations for maximal service delivery

• Ongoing site inspections and full condition audits

• Asset management systems in place

• Effective contractor management

• Bottlenecks or slippages in asset program

• Disruption of rolling routine maintenance

Aboriginal Hostels Limited16

Relevant legislation

This Corporate Plan has regard to and draws on:

The Constitution of Aboriginal Hostels Ltd

Ministerial Statement of Expectations and corresponding AHL Statement of Intent

Corporations Act 2001

Commonwealth Authorities and Companies Act 1997 (CAC Act) and its successor,

Public Governance, Performance and Accountability Act 2013 (PGPA Act) and the PGPA Rule

Aboriginal and Torres Strait Islander Act 2005

Public Service Act 1999

Auditor-General Act 1997

Privacy Act 1988

Commonwealth Electoral Act 1918

Freedom of Information Act 1982

Work Health and Safety Act 2011

Archives Act 1983

Fair Work Act 2009

Safety, Rehabilitation and Compensation Act 1988

ahl.gov.au